KenGen, an energy company in Kenya, has good news for BTC miners. The company has excess renewable energy, which it is willing to sell.
Additionally, the firm stated that over 86% of its power is renewable. The report states it is mainly from a geothermal source.
Also, the company has rentable land at its power station in Olkaria. This s close to its geothermal power plant. Bitcoin miners who want to do business in the country can rent this space.
No Crypto Miners In Kenya Yet
Peketsa Mwangi, KenGen’s Acting Director noted that;
“We are open to crypto miners here. This is because we have the power and the space.”
Although this presents a huge opportunity for miners, no company has entered Kenya recently.
The CBECI (Cambridge’s Bitcoin Electricity Consumption Index) noted that there is no BTC mining in Kenya. However, it is an ideal location as it houses over 10,000 MegaWatt (MW) of energy. Also, most of it is from a geothermal source.
In April, Capital FM, a news outlet in Kenya, announced. The news media said that the company had another geothermal plant. Therefore, KenGen is operating at a capacity of about 863MW.
What Kenya And KenGen Stand To Benefit
Furthermore, inviting mining firms to Kenya will be beneficial for KenGen. Firstly, it will encourage sustainable and environmentally friendly mining. CBECI stated that miners consume over 119.5 TWh of electricity each year. This is more than the energy used by Netherland.
Also, this can cause the company to increase its power grid. This will allow it to reduce cost and meet up with supply. As per Statistica, Kenya ranks 12th in countries with a high cost of electricity. One KWh costs over $0.22 in the country.
The nation’s electrification rate might be the reason for the huge cost. In 2020, World Bank said only 70% of Kenyans Accessed the centralized power grid. This high cost hinders the expansion of the grid.
If crypto miners come into the country, the government has a lot to benefit from. For instance, taxes and fees on mining activities can generate revenue.
Take, for instance, the government of Kazakhstan. The country earned over $1.5 million from fees on crypto miners in Q1 2022.
Moreover, Kenya is one country with a high crypto adoption rate. This is due to the volume of P2P transactions by crypto traders.
In 2021, Kenya’s Central Bank (CBK) started exploring the options of issuing a CBDC. The CBK believes that using a CBDC will ensure a faster transfer rate at a low cost. Meanwhile, it has not provided a date for issuance.